The Hindu : Front Page : BJP for urgent steps to deal with recession

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Monday, Nov 24, 2008
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BJP for urgent steps to deal with recession

Sandeep Joshi

It demands an immediate rollback of fuel prices

‘The government needs to inject more liquidity into the system’
‘UPA government has failed to pass on fall in crude prices’

NEW DELHI: The Bharatiya Janata Party on Sunday asked Prime Minister Manmohan Singh to adopt an “activist approach” and initiative urgent steps to prevent the Indian economy from the impact of the global economic slowdown. It also demanded an immediate rollback of fuel prices in view of falling international crude prices.

“Recession is at our doorsteps. The government needs to take some urgent measures to deal with the situation arising from it. The government should open its coffers for major infrastructure projects and lower interest rates to boost spending. It should also lower prices of petrol and diesel to tame inflation,” BJP general secretary Arun Jaitley said here.

Recalling the steps taken by the then Atal Behari Vajpayee Government during a slowdown in 2001, which included implementation of major infrastructure projects like Pradhanmantri Gram Sadak Yojana and National Highway Development Programme, Mr. Jaitley said the Congress-led United Progressive Alliance government, which is headed by an economist Prime Minister, had failed to take a single step to meet this challenge.

“The government needs to inject more liquidity into the system. The NDA government had gone for a softer loan regime to pump in money into the system. The Centre should also lower interest rates that will lead to economic growth and development. This will also take care of the lay-off threat that has left the industry as well as the common man worried,” he added.

Wondering why prices have failed to come down when they should have crashed because of economic recession, Mr. Jaitley said even today the inflation stood at 9 per cent, which was unacceptable.

Citing high fuel prices as one of the major reasons behind it, Mr. Jaitley said: “Crude prices have come down from $147 per barrel to $47. Any responsible government would pass on this benefit to the people. But the UPA government, which has so far hiked fuel prices four times during its regime, has failed to do so. Reduction in fuel prices will lower inflation and help the economy and people,” he added.

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